STRATHMORE INSTITUTE OF MATHEMATICAL SCIENCES

BACHELOR OF SCIENCE IN ACTUARIAL, FINANCIAL ENGINEERING AND

FINANCIAL ECONOMICS
END OF SEMESTER EXAMINATION

BSG 4207: BUSINESS STRATEGY AND COMPETITIVENESS

DATE: 13th January 2022 Time: 2 Hours

Instructions
1. This examination consists of FIVE questions.
2. Answer Question ONE (COMPULSORY) and any other TWO questions.

QUESTION ONE

a) “The Covid -19 pandemic has rendered the strategic plans drawn by most business
organisations irrelevant. It is therefore pointless for organisations to write strategic plans
in such a volatile, uncertain, complex and ambiguous environment.”
(i) State your agreement or disagreement with the above statement. (2 marks)
(ii) Provide at least three justifications of your answer by giving relevant examples
based an organisation (s of your choice. (6 marks)

b) Briefly explain the four layers of culture as proposed by Edgar Schein. (8 marks)

c) Briefly explain the McKinsey 7-Ss framework. (14 marks)

QUESTION TWO

a) Locational advantages could favour the internationalisation strategy adopted by an

organisation. Compare and contrast locational advantages as stipulated in the Porters
Diamond and locational advantages as stipulated by the international value system. (10
marks)

b) Strategy can be developed by either deliberate or emergent processes. Using relevant

examples, describe the emergent strategy development processes. (10 marks)

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QUESTION THREE

a) Using relevant examples, describe the categorisation of a corporate’s business based on

the dimensions of “feel” and “benefit”. (10 marks)

b) Using illustrative examples, discuss at least three instances when diversification is an

effective strategy for growth. (10 marks)

QUESTION FOUR

a) An organisation can get competitive advantage through acquisition of resources and

capabilities that are difficult and costly to imitate. Using relevant examples, discuss at
least three sources of inimitability for resources and capabilities. (10 marks)

b) Turn-around strategic change involves rapid change involving a good deal of upheaval
in an organisation, but which still does not fundamentally change the culture or the
business model. Describe the five elements / areas of focus of turn-around strategies.
(10 marks)

QUESTION FIVE

a) Governance systems should be considered in strategy formulation of organisations.

Explain at least three themes that are relevant in relation to ensuring the efficiency and
effectiveness of Boards of Directors. (10 marks)

b) Value system analysis is important in the identification of an organisation’s resources and

capabilities. Discuss three considerations of value system analysis in strategy
development. (10 marks)

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